Organizational integration a must for ERP software effectiveness

Enterprise resource planning software is only as good as the people that use it properly. Sometimes, however, even with programs as powerful as Microsoft Dynamics NAV 2015 and people well trained for it, there are still issues that can easily come up that prevent the program from reaching its full potential. In situations such as these, the problems lie not with the software or the user but with organization that it is based. A new implementation can require changes not only to the way employees conduct work, but how a business functions at an operational level. Only by tearing down the silos that prevent information from moving back and forth can this occur.

Visibility affects performance
One of the key aspects of any ERP software including Dynamics NAV is the ability to visibility the entirety of all processes being utilized by a manufacturer when an order is received. Sales are able to read the numbers from reports created from the day, week or month of service. From there, the department can make forecasts based on previous demand. Marketing can develop strategies built on that principle. Employees on the shop floor will know what job is next for them. Customer services representative will be able to tell clients where their order is through the warehouse management system.

Having this level of integration is practically a necessity if companies wish to grow. SPI Research conducted a survey of companies that integrated software programs over multiple departments. What they found is that when systems were integrated, companies received annual growth that was 4 percent higher than non-integrated solutions. The number of new clients grew by 30 percent, while headcount went up 36 percent. These numbers indicate that breaking down the silos through integration and visibility can help a company grow.

Integration sets the mark
With this in mind, there are various NAV modules that are designed to help improve integration and visibility in different ways. One program that can help with this is timekeeping software. This software, as Dynamics partner Tribridge notes, can help better manage timesheets for payroll by submitting them automatically at the end of every week. It can also track hours worked as well as better allocate workers based on the jobs they're expected to perform. This can improve accuracy on payroll as well as quality control on orders, putting better workers on the line when necessary.

There are other modules a manufacturer can use to improve integration and have better productivity overall. Sales forecasting, for example, allows a company to track key performance indicators in sales and expenses. This can be turned into predictions on sales, which can enable the businesses more accurately purchase orders based on demand. Another aspect is project management, which can record information on the jobs being produced. This presents the ability to keep track of them, figuring out which ones are being sent out on time and with few re-works. All of these features cumulate with invoicing and financial systems integrating at once. This allows accurate billing and payment management, which can help manufacturers determine their profit margins sooner rather than latter.

Learn more about the benefits of automated time collection by downloading the free white paper entitled "Justifying the Switch to Automated Time Collection" from DMS today.